Struggling Retailers Rack Up $52 Billion in Missed Rent
Eight months into the pandemic, clothing stores, restaurants, gyms and other businesses find themselves in a $52 billion hole.
That’s the total amount of retail rent that’s been missed since April, according to CoStar Group Inc. While some of the overhang has since been paid back, the remainder will be a drag on merchants as they try to rebuild and landlords demand their money. In some cases, the unpaid balances could drive them into bankruptcy.
Overdue rent compounds the problems these companies have faced this year, including lost sales during shutdowns, consumers’ reluctance to return to stores and restaurants and the long-running migration of shoppers from brick-and-mortar locations to online venues.
“It’s going to take a period of years, not months, to get through this,” said Michael Hirschfeld, vice chairman at JLL, a real-estate services firm. Deferred rents and a raft of tenants’ failures helped drive CBL & Associates Properties Inc. and Pennsylvania Real Estate Investment Trust into bankruptcy earlier this month.
https://finance.yahoo.com/finance/news/struggling-retailers-rack-52-billion-131523354.html#:~:text=(Bloomberg)%20%2D%2D%20Eight%20months%20into,according%20to%20CoStar%20Group%20Inc.
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